The writing is on the chalkboard for employees of Penn Hills School District who, in the words of Erin Vecchio, school board president, "collect a paycheck but don't produce."

"We do have some deadwood," Vecchio told her fellow board members and the audience at Monday's school board meeting. "It's time to get rid of it."

With the district facing a $249,000 deficit as officials work to hammer out the 2008-09 budget, there's no question that cuts will need to be made.

Vecchio doesn't want to reduce the teaching staff, but instead hopes to target what she called the "top heavy" administration, job positions that can be combined, transportation costs and the elementary Schools of Focus program.

"We have no money," Vecchio said on Tuesday about the budget. "We're pretty broke."

The school district ranks first in the municipality for number of employees.

"In this day and age, if you have a job, you're pretty lucky," Vecchio said at the meeting. "We are expecting for you to produce for our children and for the taxpayers of Penn Hills."

Vecchio places the blame for the deficit on several factors -- overspending by ex-business manager Bruce Dakan, people hired over the years as what she called "political favors" and lack of updates to school buildings.

If there was a theme that ran through Monday's meeting, it was that the board is facing some critical decisions as it tackles the budget. What is and isn't on the chopping block will be hashed over the next two months.

Finance committee meetings are scheduled for 5:30 p.m. on April 17 and 29 at the administration building, 309 Collins Drive. Both meetings are open to the public.

A public hearing on the preliminary budget is set for 7:30 p.m. on May 6. A second public budget hearing is at 7 p.m. on May 20.

Board member Barry Patterson said steps such as changing building alignments might be painful, but are justified.

Vecchio said Tuesday that Schools of Focus would "probably definitely" be eliminated to reduce transportation costs. Instead, students would attend schools close to their homes -- and building new elementary schools to replace aging ones is something she'd like to see done down the road.

She also said students who attend private or parochial schools outside the district could find themselves riding a Port Authority bus rather than Penn Hills footing the bill for a school bus.

Vecchio said with gas prices out of control, Port Authority bus passes might be warranted when just a few students are being bused to an outside school.

The state requires the district to provide free transportation to students attending private or parochial schools within 10 miles of the municipality's border. The law does not specify the mode of transportation.

An increase in the number of administrators, many of whom live outside the district, is not warranted with Penn Hills' declining population, Vecchio said.

On the other hand, many of the teachers, cafeteria workers and maintenance personnel who form what she called the "base" of the district are residents.

Vecchio is hoping to push for the federal government to pick up the tab for cyber school students, who cost the district money.

Charter school students also pull money away from district funds, she said.

The heightened awareness of budget concerns prompted residents to question some proposed agenda items on Monday.

Elisa O'Malley, a resident who works as a high school secretary, questioned a proposal to approve the firm of Campbell, Durant and Beatty P.C. as chief labor negotiator to represent the district in collective bargaining and other labor matters.

The board voted to pay the firm $175 an hour for its services.

O'Malley said knowledgeable people are already in place for negotiations.

However, Superintendent Patricia Gennari said the upcoming contracts with employees are critical for the future of the district and the firm will work in tandem with the district solicitor.

Another resident questioned a motion to pay James Calabrese as a consultant to the business office for special projects through August at a cost of $350 a day. Though the board approved the motion, Calabrese will be called only on an as-needed basis, determined by the superintendent, assistant superintendent and business manager.

Calabrese served as interim business manager prior to the board hiring Rick Liberto for the post.

Patterson and Gennari praised the leadership of Vecchio and Carolyn Faggioli, board vice president, in creating what they called the "best" school board in the last 15 years.